Imported ferrous scrap offers in India were firm despite limited deals. Amid weak domestic fundamentals, bids lagged behind the seller’s expectations. The Indian currency depreciated to over Rs74 levels against $1 from Rs73 on Tuesday which also affected importers’ interest.
Buyers were waiting for clarity on the global price trend as opinions were divided. Traders were bullish citing low availability of material for containerized trades and container shortages.
The daily Davis Index for containerized shredded, Thursday, inched up by $0.88/mt to settle at $530.63/mt cfr Nhava Sheva. Offers were firm in the range of $535-540/mt cfr Nhava Sheva. Indian buyers raised bids kept them at $525-530/mt cfr Nhava Sheva.
Offers for #1 HMS from the UAE were at $500/mt cfr Nhava Sheva while trades at $505-510/mt cfr Chennai. The daily index for UAE-origin HMS 1&2 (80:20) dipped by $1/mt to $490/mt cfr Nhava Sheva with bids at $485/mt cfr Nhava Sheva. Mills want prices to drop by $5-10/mt before they book material.
In Alang, melting scrap decreased by Rs400/mt from a day ago to Rs36,800/mt ex-yards. In Mumbai, rebar prices declined by Rs500/mt on Thursday after remaining flat for the last three days. Rebar trades were limited and at Rs47,400/mt ex-works. In Mandi Govindgarh, ingot prices dropped by Rs1,500/mt in two days on weak demand. In North, furnaces resumed scrap purchases after traders associations’ called off their strike against unfair pricing.
The daily Davis Index for US-origin HMS 1&2 (80:20) rose by $5/mt to $502.5/mt cfr Nhava Sheva on Thursday. Deals, however, were limited for the US and UK-origin HMS in India as most feel prices have already reached a peak and could soften to match buyers’ expectations.
In China, domestic billet prices were unchanged at $4,940/mt ex Tangshan from Wednesday, inclusive of VAT. Steel futures rose on Thursday by CNY150/mt. Iron ore prices for ferrous content 62pc dropped to $213.95/mt cfr China. Asian billet and HRC export prices were rangebound, with Iranian bulk billet offered at $665/mt cfr China.
Subcontinent
The daily Davis Index for containerized shredded, Thursday, settled at $535.81/mt cfr Indian subcontinent, up by $1.66/mt; while that for containerized US-origin HMS 1&2 (80:20) settled at $507.16/mt cfr Indian subcontinent, up by $3.29/mt. Container supply-demand imbalance due to restrictions at Chinese ports has led to a possibility of freight hikes by major shipping lines.
($1=Rs74)